EAU CLAIRE, Wis. — Royal Credit Union announced this morning it has agreed to acquire 11 branches in northwestern Wisconsin from troubled AnchorBank.
Under the terms of the agreement, which would mark the largest deal by a credit union for branches of a bank, the $1 billion-asset Royal will assume approximately $177 million in deposits and receive a corresponding amount in loans, real estate, and other assets from the bank. Financial terms were not disclosed.
Royal, one of the biggest state chartered credit unions in the country, reported a $3.4 million net for the first three quarters of the year, even after recording a $1.2 million charge for the corporate credit union bailout. It had 9% capital at the end of the third quarter.
AnchorBank said the deal, which is expected to close in the first quarter of 2010, will shrink its assets while enhancing its capital and ability to address asset quality and other obligations. The sale will move AnchorBank closer to compliance with an Office of Thrift Supervision supervisory agreement that calls for higher capital ratios.
The branches involved in the transaction are located in Amery, Balsam Lake, Centuria, Menomonie, Milltown, New Richmond, Osceola, River Falls, St. Croix Falls, Somerset and Star Prairie. All of the offices being sold were acquired by AnchorBank in its 2008 acquisition of S&C Banco.
Once the acquisition is complete, Royal will have 26 branches, 23 across central and western Wisconsin and three in the Twin Cities metro area, serving more than 140,000 members.